Claymore Investments, Inc. has filed a preliminary prospectus for the initial public offering of the Canadian Financial Income Fund.

Claymore says the fund will invest in a diversified and actively managed portfolio of securities of issuers primarily in the Canadian financial sector. The fund’s investment objectives are to:

  • maximize total return for investors, consisting of distributions and capital appreciation; and
  • provide investors with a stable stream of monthly cash distributions of 5¢ per unit, to yield 6% per year on the issue price of $10 per unit.
  • MFC Global Investment Management (Canada), a wholly owned subsidiary of Manulife Financial, is the fund’s investment advisor.

    Claymore will be responsible for the management of the fund.

    The offering is being made in each of the provinces and territories in Canada through a syndicate of investment dealers led by RBC Capital Markets and CIBC World Markets Inc., and including BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Capital Corp., Desjardins Securities Inc., Dundee Securities Corp., First Associates Investments Inc., HSBC Securities Inc., Raymond James Ltd., Wellington West Capital Inc., Berkshire Securities, Inc. and McFarlane Gordon, Inc.

    Claymore Investments is a wholly owned subsidiary of Claymore Group, LLC, a financial services and asset management company based in the Chicago area. Claymore Group entities provide supervision, management, servicing or distribution on approximately US$10.7 billion in assets as of May 31.